RIA M&A in 2020 to look a lot like 2019: Fidelity's Canter

RIA M&A in 2020 to look a lot like 2019: Fidelity's Canter
This year will close with about 200 large RIA deals, a number that will probably be reached in 2020 as well.
DEC 09, 2019
After a white-hot year of mergers and acquisitions by large registered investment advisers, the RIA industry should expect more of the same in 2020, said David Canter, executive vice president at Fidelity Clearing & Custody. The industry will close 2019 with just about 200 acquisitions of large RIAs, and next year should see a similar amount, said Mr. Canter, who was speaking at the DeVoe G2 Forum on Monday afternoon in Miami Beach. [Recommended video: 2020 adviser outlook: Focus on managing client expectations] "We're seeing more and more assets being trade at $1 billion or more," said Mr. Canter. "And 2020 is probably going to be a record year, and we believe there are a lot of reasons why, but it's still pretty small when you think of the total denominator of 13,000, SEC registered RIAs, meaning those firms have at least $100 million in assets under management." In other words, the M&A market is not anywhere close to being tapped out, Mr. Canter said. "We believe, [the market] is going to continue to heat up, for a number of reasons," he said. First, there is a flood of capital from private equity funds and other sources in the marketplace, and the historic bull market in stocks only makes firms more valuable. Finally, the founders of firms are getting older and there is no simple way to put a succession plan in place. "It's going to be about concentration, not consolidation, and we will probably see about another 200 deals next year, but we are not going to see 500," he added.

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.